A neighbourhood is "at breaking point" because of people taking drugs, urinating and defecating openly in the street.
Residents say some of the homeless people either housed at or visiting a guest house in Brighton's Charlotte Street have been intimidating and tried to break into vehicles and shops.
“It’s horrible," Claudia Marlow, one of the many residents and business owners who are affected by the issue, said.
"We are at breaking point. We are often woken up at 3 am to screaming, yelling and ambulance sirens. It’s not fair.
“I understand they are troubled people, but they are not receiving the help they need.”
OYO Fab Guest House currently has a contract with Brighton and Hove City Council to support homeless people to move away from the streets.
Mrs Marlow lives and works in Charlotte Street, where she owns Paskins Town House. She said the antisocial behaviour has affected her guest house.
“I am scared for my guests," she said. "It has ruined the reputation of our business. This situation feels hopeless.”
Steven Courtney, who owns the Red Brighton Blue Hotel on this street, said people have pooed on his doorstep and "peed outside regularly".
“We have drug deals going on outside the guest house, and often you will see people who appear to be drug-addicted picking up cigarette butts off the ground," he said.
“It’s turned us off Brighton. We love Brighton. We have lived here for ten years, but this gets you down.”
Telly Govaart, who owns a hotel called The Twenty One, added: “It’s terrible. Even last night, there were problems.
“Right now, I am sitting on my steps, and there is drug dealing happening in front of me. It's constant.”
Change Grow Live (CGL) is a national health and social care charity and is responsible for the OYO Fab Guest House and runs it on behalf of Brighton and Hove City Council.
It held a meeting on Tuesday at St Mary’s Church Hall in Kemptown, St James’s Street - which around fifty residents attended to voice their concerns. They are hoping that the contract will not be renewed.
A representative from CGL and two local councillors attended this meeting, but residents said it did not offer any solutions.
A spokesman from CGL told The Argus: "In partnership with Brighton and Hove City Council, our Rough Sleeper Outreach team is dedicated to supporting homeless people in the town to move away from the streets and into safe accommodation options, such as the property on Charlotte Street.
“Following a recent meeting, we are aware of the matters raised by local residents relating to this specific property.
"We are now looking into these concerns and will be working closely with the council and local authorities to act on any issues, as well as ensuring those staying at Charlotte Street are continued to be fully supported through our services."
Councillor Gill Williams, chairwoman of the council’s housing and new homes committee, said: “We currently lease a building in Charlotte Street, where residents are supported by Change Grow Live as part of a grant-funded project.
“We have been made aware of concerns raised by residents in Charlotte Street and our team and I met with local people this week to discuss those concerns directly with residents, alongside representatives of Change Grow Live, the landlord of the building, the security firm contracted to support the facility, Sussex Police, and a number of my fellow councillors.
“We have listened to residents and are arranging a follow-up meeting, which Sussex Police will again be invited to attend, and will provide any support necessary to address residents’ concerns.
“Change Grow Live does some fantastic work locally helping people to make positive and lasting changes and projects like this are an important part of efforts in the city to support people who have experienced challenges with long-term substance use.
“The wellbeing of all our residents is important to us and we will work hard to resolve the issues of concern.”
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